Correlation Between Kumho Petro and Stic Investments
Can any of the company-specific risk be diversified away by investing in both Kumho Petro and Stic Investments at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Kumho Petro and Stic Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kumho Petro Chemical and Stic Investments, you can compare the effects of market volatilities on Kumho Petro and Stic Investments and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kumho Petro with a short position of Stic Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kumho Petro and Stic Investments.
Diversification Opportunities for Kumho Petro and Stic Investments
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kumho and Stic is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Kumho Petro Chemical and Stic Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stic Investments and Kumho Petro is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kumho Petro Chemical are associated (or correlated) with Stic Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stic Investments has no effect on the direction of Kumho Petro i.e., Kumho Petro and Stic Investments go up and down completely randomly.
Pair Corralation between Kumho Petro and Stic Investments
Assuming the 90 days trading horizon Kumho Petro Chemical is expected to generate 1.09 times more return on investment than Stic Investments. However, Kumho Petro is 1.09 times more volatile than Stic Investments. It trades about -0.06 of its potential returns per unit of risk. Stic Investments is currently generating about -0.14 per unit of risk. If you would invest 9,409,559 in Kumho Petro Chemical on October 17, 2024 and sell it today you would lose (209,559) from holding Kumho Petro Chemical or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Kumho Petro Chemical vs. Stic Investments
Performance |
| Timeline |
| Kumho Petro Chemical |
| Stic Investments |
Kumho Petro and Stic Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kumho Petro and Stic Investments
The main advantage of trading using opposite Kumho Petro and Stic Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kumho Petro position performs unexpectedly, Stic Investments can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Stic Investments will offset losses from the drop in Stic Investments' long position.| Kumho Petro vs. System and Application | Kumho Petro vs. KakaoBank Corp | Kumho Petro vs. Settlebank | Kumho Petro vs. Lotte Data Communication |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Global Correlations Find global opportunities by holding instruments from different markets |